FedEx: IRS to withdraw ground contractors from 2002 tax audit

A spokesman for FedEx said it was "pleased" with the revision.

The Trucker News Services

11/3/2009

SEATTLE —FedEx Corp said in a recent regulatory filing that the U.S. Internal Revenue Service has revised an employment tax audit notice against FedEx for 2002 that would drop the assessment regarding FedEx Ground independent contractors.

A spokesman for FedEx said it was "pleased" with the revision.

Related issues are still under audit for 2004 through 2008; however, FedEx believes a similar conclusion will be raeched for those years as well.

FedEx said last year that the IRS was continuing its employment tax audit of FedEx Ground for the 2002 calendar year after the IRS withdrew a tentative assessment regarding how independent contractors are classified.

Using independent contractors at FedEx Ground lets FedEx compete more effectively with UPS, whose drivers are unionized by the Teamsters.

Opponents say the amount of control FedEx has over its contractors make them employees and that they should receive the benefits that go along with that status.

FedEx, however, has repeatedly emphasized that its contractors are independent entrepreneurs.

Kevin Jones of The Trucker staff can be contacted to comment on this article at kevinj@thetrucker.com.

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